The Retirement Fix: Less Stress, More Success

As Benjamin Franklin said - there are only two certainties in life, and today, I’m not here to talk about death.

If you’re like most people I know, you’re probably frustrated with our tax system. Whether you feel that your taxes are too high or irritated that our federal, state and local governments waste tax dollars, trust me, you are not alone. I remember a comedian mentioning one time that he was reviewing his paycheck and noticed a lot of his tax dollars going to “some guy name FICA” and proceeded to give a great punchline... I don’t even know the guy!”

So, let’s talk about taxes: Income taxes to be specific. If you earn a paycheck, you likely pay income tax, but if you are like many people the how and the why behind their annual 1040 forms remains a mystery to be solved only by their accountants every year.

Today, I am going to take a look at what, exactly, is income tax and how it works.

Hi, I’m John Gigliello and you are listening to Invest in Knowledge, a podcast for people nearing or in retirement who want to learn more about proactive tax planning, retirement income planning, social security timing, investment management and asset protection. After a life-altering health issue at age 39, my calling in life became clear: To share my knowledge of personal finance with people who are looking to make smart and responsible choices with their money.

Did you know that Income Tax was first collected by the United States government in 1862 to help finance the Civil War. President Abraham Lincoln signed into law a revenue-raising measure to help pay for Civil War expenses. The measure created a Commissioner of Internal Revenue and the nation's first income tax. It levied a 3 percent tax on incomes between $600 and $10,000 and a 5 percent tax on incomes of more than $10,000.

The federal tax code was created in 1913, at the time, just 400 pages long. It now covers more than 70,000 pages of complex rules regarding income, exemptions and credits.

So, what is Income Tax, other than something that we all dread paying? In a nutshell: Governments impose Income tax on money generated by businesses and individuals within their jurisdiction. By law, taxpayers in the U.S. must file an income tax return annually to determine their tax obligations.

This tax then serves as a source of revenue for governments, used to fund public services, pay government obligations, and provide goods for citizens. Historically, the funds collected also help pay for government programs and services, such as Social Security, national security, schools, and roads.

In addition to the federal government, many states and local jurisdictions also levy income taxes.

One of the services I offer high net worth retirees is proactive tax planning. We review anticipated income, from all sources, each year and employ strategies to help clients make the most of their hard-earned money. If this sounds like something from which you could benefit, reach out to us. You can find more about the services we offer at www.jgigliello.com.

And don’t forget, we always encourage you to take part in the financial planning process to pursue a confident financial future and in turn, feel optimistic and proud about your accomplishments. If you’ve diligently saved over the years and have accumulated investment and retirement assets AND you understand that the success of your retirement is too important to be managing yourself and you value experienced and professional guidance, feel free to give us a call for a complimentary initial consultation.

If there is a financial planning topic you would like us to address on a future episode of Invest in Knowledge, please reach out and let us know.

Picture this: Your wife or partner and you are driving along one day, rushing about to tackle the numerous errands you have planned for the busy morning. Back home, your two daughters are working to finalize their plans for a birthday party for their favorite uncle. Your errands take you all over town, and the Saturday morning traffic is starting to build. And then suddenly, in the blink of an eye, your car is struck in the passenger side, t-boned at a busy intersection. It all happens so fast; you have no time to think or react. You feel pain throughout your body, and you manage to look over into the passenger seat. Your wife is bleeding and not moving. The last thing you remember before you pass out is the distant sound of an ambulance siren.

Your daughters arrive at the local hospital and are ushered quickly to the emergency room. They find you in a condition that no one ever wants to see. The doctors explain to your daughters the severity of your conditions and that some difficult decisions will have to be made regarding treatment. He then asks, “Who has the authority to make medical decisions on behalf of your parents?” The girls look at each other, confused, and ask the doctor, “What do you mean; what are you talking about?” The doctor tells your daughters that there is a chance that your wife and you may never resume consciousness and that someone will have to make medical decisions on your behalf. “Do your parents have a health care POA or a living will?” the doctor asks. The daughters respond that they have “no idea” and have never heard of these types of documents. In a heightened state of emotion, the girls look at each other and ask, “What do we do now?”
Hi, I am John Gigliello, CERTIFIED FINANCIAL PLANNERTM with the Albany Financial Group and you are listening to Invest in Knowledge, a podcast about all things financial. After a life-altering health issue at age 39, my calling in life became clear: To share my knowledge of personal finance with people who are looking to make smart and responsible choices with their money. Only through education, action and accountability can you build the confidence and security you need to live a satisfying life.
Today, I am going to talk about the 5 Essential Documents of a Complete Estate Plan.

Interest rates have never looked better for savers. But you shouldn’t put all your eggs in one basket, or in this case, CD.

With the Federal Reserve’s recent quarter percentage point rate hike, interest rates have reached a new high. At 5.25% to 5.5%, this is the highest the benchmark federal funds rate has been since 2002.

This era of higher interest rates makes borrowing money expensive, but it can also make saving money lucrative.

Interest rates may be near a cyclical peak, creating an opportunity for some to lock in higher yield savings. This could be especially important for retirees living on a fixed income who want the security of a guaranteed rate.

Since rates are cyclical and are likely to decrease at some point in the future, I’d like to talk today about how you can capitalize on the higher rates while they last.

Hi, I’m John Gigliello, Certified Financial Planner with the Albany Financial Group and you’re listening to Invest in Knowledge, a podcast about all things financial. After a life-altering health issue at age 39, my calling in life became clear: To share my knowledge of personal finance with PEOPLE who are looking to make smart and responsible choices with their money. Only through education, action and accountability can YOU build the confidence and security YOU need to live a SATISFYING life.

In today’s episode I am going to address the upside of higher interest rates, particularly for those who have reached the retirement phase of their lives. The inspiration for this episode comes from a Wall Street Journal article, which addressed this very issue on April 18, 2023.

Colleges are priced like airline tickets. Everybody pays a different price. But at least on airlines, you might get a more comfortable ride if you pay more. Paying a lot more could get you a first-class seat. Paying a little more could get you an aisle seat near the front or a seat on the exit row with better legroom.
But if you pay a higher price for a college, you won’t get any extra perks for that. Your child won’t have smaller classes or be entitled to more face time with professors just because you paid more for a bachelor’s degree than the parents of other students.

There is no academic advantage to paying more. Worse, paying more can negatively affect your overall retirement plan, which is why it’s even more important to cut your college costs.

Here is a reality that will probably surprise you: most colleges are always on sale. That is a fact.

Still, Americans owe more than $1.7 trillion in student loan debt. That’s for 43 million borrowers, according to statistics released last month by educationdata.org.

The average public university student borrows $30,030 to attain a bachelor’s degree and 2.8 million people over the age of 60 are still paying off college loans.

The growing cost of college and the resulting student-loan debt are affecting families all the way through retirement.

It used to be that homeowners planned to pay off their mortgages and live out retirement debt-free.

But a survey by national mortgage firm American Financing found that 44% of Americans between the ages of 60 and 70 have a mortgage when they retire. Nearly 17% think it’s possible they will never pay off the mortgage. Why is that? For many families, it’s the price of sending their child to a costly college.

The problem that we’re dealing with is that families often overpay for college, take on too much debt, and hurt their savings and retirement plans because they tumbled unprepared into the late-stage college funding pressure cooker.

Hi, I’m John Gigliello, Certified Financial Planner with the Albany Financial Group and you’re listening to Invest in Knowledge, a podcast about all things financial. After a life-altering health issue at 39, my calling in life became clear: To share my knowledge of personal finance with PEOPLE who are looking to make smart and responsible choices with their money. Only through education, action and accountability can YOU build the confidence and security YOU need to live a SATISFYING life.
You may be wondering, "Why is a financial professional up here today talking about college?" I do this as a service to my clients and my community because I've seen many families struggle with these issues. Getting kids through grade school and then high school is hard enough. You’ve been working and working, maybe saving for the eventual college tuition. Then, BOOM! Your kid is a junior or senior in high school and you realize you haven’t planned enough. The costs of tuition, plus room and board, are higher than you expected. Stress increases as you receive piles of slick brochures from fancy colleges and hear your friends brag about where their kids are going.

As we just discussed, this leads to poor decisions which may negatively impact your family’s financial health for years, even decades, to come. I’ve seen that happen and I want to help you before you get to that stage. Your son or daughter can go to a good school, have a great college experience, and do it without saddling any of you with undue debt. I’ve seen that happen, too.

Before you file your tax return, listen up! A few important changes this year could put money back in your pocket. Be sure you’re not missing out and tune in as we break down the key updates to the 2025 tax code. Spoiler alert: Not all of the changes will save you money.

Hi, I’m John Gigliello, a CERTIFIED FINANCIAL PLANNERTM with the Albany Financial Group, and you are listening to Invest in Knowledge, a podcast for people who are planning for retirement or already retired and want to know more about proactive tax planning, retirement income planning, social security timing, investment management and asset protection. After a life-altering health issue at age 39, my calling in life became clear: To share my knowledge of personal finance with people who are looking to make smart and responsible choices with their money.

Tax season is officially underway, so let’s take a look at the changes for this filing season. Some may save you money, but some may not. Even though Congress did not make major changes for this year, there are some new details to be aware of, especially for those who sell things online, bought an electric vehicle, or who prefer to get their refund as a savings bond.

Before we get started, please remember that the rules for income taxes are complex and they change a bit every year, including annual inflation adjustments for tax brackets and the standard deduction.

Bigger changes may be in store for next year and beyond, depending on how President Trump and Congress address the fate of the 2017 Tax Cuts and Jobs Act, which sunsets on Dec. 31 this year.

Filing taxes might also be a little less cumbersome this year since the IRS upgraded its online services by adding features and making it easier to check the status of refunds.

It takes taxpayers an average of 13 hours and $290 to prepare and file their tax returns, according to the IRS. But the time and money seemed to pay off. Last year, tax refunds averaged $3,138, according to the IRS. Taxpayers who file electronically and choose direct deposit should get the payments within 21 days.

Here are some key changes for this year to note:

• The Standard deduction has increased, along with other annual inflation adjustments.
• If you sold anything online, you might receive a 1099K.
• If you bought an Electric Vehicle in 2024, you may qualify for a tax credit. But you may also owe.
• Filers in disaster relief areas may be eligible for extended deadlines.
• More taxpayers are getting hit with penalties for underpayment.
• This year, there are more ways to file your taxes free.
• I bonds are no longer an option for your refund.